Risks to CPAs Doing Nonprofit & Government Audits

April 26, 2016

The number of local governmental entities and tax-exempt organizations is over 1.5 million. As these agencies require yearly audits that fall on fiscal years rather than year-end, these audits can provide additional business opportunities outside of the usual busy season for CPAs. However, the malpractice claims from auditing mistakes can be the most severe, requiring a greater awareness of risk management.

In this AICPA® Professional Liability Spotlight article Daniel J. Gartland, CPA, examines the pitfalls of expanding your practice into government and not-for-profit organization auditing, as well as how you can prepare yourself and your team for success. He discusses the following topics:

Train for fraud awareness

Staff engagements appropriately

Become an expert

Maintain competence through CPE

Report identified issues

Maintain professional skepticism

Keep it professional

Ethics matter

Should you or your firm enter into not-for-profit or governmental auditing services, make sure your Accountant Professional Liability Insurance is up for these specialized responsibilities by contacting a Brunswick Companies expert today at 800-686-8080.

Brunswick Companies is the Territorial Administrator for the AICPA® CNA Sponsored Program and proudly share their market insights.